More LNG for Europe as Germany’s SEFE takes steps to secure gas from South American player

December 2, 2025, by Melisa Cavcic

Germany’s Securing Energy for Europe (SEFE) has set the wheels in motion to enrich its liquefied natural gas (LNG) arsenal with another multi-year LNG supply agreement, which has been signed with Argentina’s Southern Energy, in a bid to further strengthen Europe’s energy security.

Rendering of Argentina LNG project; Source: YPF

The duo’s heads of agreement for an eight-year supply arrangement will enable SEFE to buy up to two million tonnes per annum (mtpa) of LNG on a free on board (FOB) basis, with deliveries scheduled for late 2027. This deal is contingent on the negotiation of a definitive sales and purchase agreement (SPA) between the two parties, which, once concluded, would be Argentina’s first long-term LNG supply contract.

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Frédéric Barnaud, SEFE’s CCO, commented: “SEFE’s first LNG partnership with a South American supplier not only contributes to the geographic diversification of our portfolio, but also strengthens Europe’s energy security.

‘We are pleased to support Argentina on its path to becoming a global LNG exporter. This also provides SEFE with a welcome opportunity to continue its collaboration with the Hilli Episeyo’s team as it moves from Cameroon to Argentina.”

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Southern Energy is launching Argentina’s first large-scale LNG export venture, comprising two floating LNG terminals (FLNGs) with a combined capacity of about six mtpa. The first FLNG, Hilli Episeyo, will produce 2.45 mtpa from the end of 2027, while the second, MK II, will add 3.5 mtpa from late 2028.

Rodolfo Freyre, Chairman of Southern Energy, emphasized: “The agreement with SEFE constitutes the first large-scale LNG sales agreement for Argentina and a key milestone for the future development of the Vaca Muerta gas resources. We’re proud to take this first step into the LNG market with a globally respected and established counterpart on our side.”

Based on the current plans, both FLNG units, chartered from Golar LNG, one of the South American firm’s shareholders, will be deployed at Golfo San Matías, Province of Río Negro, Argentina, for a 20-year term.

SEFE has been actively sourcing and delivering LNG across multiple locations while optimizing its growing global portfolio, including managing complex operations such as ship-to-ship transfers and interactions with FLNGs.

The move to get more LNG from Argentina comes after Germany’s Securing Energy for Europe struck a multi-year LNG supply deal with ADNOC Gas, which followed shortly after SEFE ironed out an LNG deal with Venture Global and a gas deal with the State Oil Company of the Republic of Azerbaijan (SOCAR).